As time goes on, the price of gold is increasing. Nowadays, it has become impossible for the common man to buy gold. Gold prices have once again surpassed Rs 80,000 for every 10 grams in the country. Back in July, when the government rolled out the full budget for the financial year 2024-25, they slashed the import duty on gold.
This move had a positive impact on the market, causing gold prices to drop significantly below Rs 80,000. Now, the big question is whether Finance Minister Nirmala Sitharaman will push to lower gold prices in the upcoming Budget 2025, set to be presented on February 1, making it more affordable for the average person.
Jewelry and bullion dealers across the nation are urging the finance minister to prioritize reducing gold prices. Reports suggest that the government might introduce a system allowing people to buy gold on EMI. Additionally, experts are calling for a single regulatory body to oversee the gold market.
The need for a unified gold regulator
Currently, gold is traded in various forms, including gold ETFs, digital gold, and physical gold, each governed by different regulatory bodies like SEBI, RBI, and DGFT. The Ministry of Finance and the Ministry of Commerce and Industry also keep an eye on the gold trade.
Experts argue that having a single regulator for the gold market would simplify price regulation and create consistency in gold prices nationwide.
Reducing taxes to boost margins
Refiners dealing in gold jewelry and physical gold have been operating on a slim margin of just 0.65 percent for years. Prithviraj Kothari, president of IBJA, the largest association of bullion and jewelers in the country, believes that cutting the import duty on raw gold would help improve these margins and ultimately lower gold prices.